As revealed in the documents filed with the Corporate Affairs Ministry, Flipkart Payments has added a capital of Rs 518 crore in its digital payment arm, PhonePe. The investment is part of the $500 million commitment Flipkart made in 2017 to invest in PhonePe.
Reportedly, Flipkart Payments has been allotted 24.5 lakh equity shares in lieu of the investment. Even in October 2016, PhonePe had received Rs 83.68 crore via allocation of 41.84 lakh shares at a premium of Rs 190 per share.
PhonePe was previously owned by FX Mart Private Ltd, and was eventually bought by Flipkart in April 2016. The digital payment app competes with the likes of Amazon Pay, Paytm, Google Tez and Mobikwik.
However, with the likes of WhatsApp also joining the digital payments industry, the funding comes in a positive light for the company. The new round of funding will really help PhonePe strengthen its position in the market.
Earlier this year, PhonePe also partnered mobile wallet company FreeCharge to allow the latter’s customers pay for transactions at PhonePe’s partner merchants.
Meanwhile, PhonePe recently had to fight for its piece of pie. When Paytm recently revealed itself as leading the market, PhonePe said that Paytm’s claims were “unidimensional and misleading”. In a blogpost, PhonePe said while Paytm “seems to be leading the market” in terms of number of transactions, the average value of such transactions is much lower at Rs 40 compared to its own ATV (average transaction value) of Rs 1,800. PhonePe clarified that data around Paytm’s ATV and Average Transactions per Customer (ATPC) was not available.